Burgos already excluded, Citic Dicastal protecting Galicia and northern Portugal Possible sites for the construction of a tire factory with an investment of around 150 million euros. Owner of Porriño-based boiler manufacturer Censa since 2011, the Chinese multinational’s first major factory in Southern Europe is the star of countless examples of competition on both sides of Miño.
Despite calls for cooperation and good diplomatic tone when the eurozone and its synergies are discussed, both regions regularly struggle for projects like this one. Many of the new laws and reforms in Xunta’s previous regulations to attract investments or simplify administrative procedures cast skepticism at the economic trajectory of the neighboring country, where low cost remains a dangerous component for productivity. Actually, salary gap As FARO from the Prensa Ibérica group explained a few weeks ago, right now, The main trump card of the Portuguese option in the Citic Dicastal review.
Reindustrialization strategy in Portugal’s northern region combines low-cost payrolls with low-cost land, agile bureaucracy at the start of projects, public assistance, and tight commitment to R&D It climbed 40 places in the last six years in the European Union Competitiveness Index, rising from 173rd in 2019 to 135th among 234 regions in 2022. innovation (82). Galicia is also on the rise, but much less (from 163 to 149) and the best place comes from technological education: 55.
The north of Portugal surprises the Galician economy. And not only in the European regional competitiveness index. Combined Gross Domestic Product (GDP) of Alto Minho, Cávado, Ave, Área Metropolitana do Porto, Alto Támega, Támega e Sousa, Douro and Terras de Tras-os-Montes, which is 2.3% more than in 2021 Over 64.7 billion euros According to the balance sheet published by the Galician Statistical Institute (IGE) within the framework of the Galicia-North Portugal Cross-Border Observatory, Galicia (63,247 million euros).
The unstoppable growth of the northern Portugal region since the end of the global financial recession that put the entire country at a historic crossroads – it was the third community state along with Ireland and Greece to need a fiscal bailout – has closed the GDP gap by 10 percent. Galicia. He was about to break the gap in 2019. Like the rest of the world, COVID-19 activity in the north of Portugal has dropped sharply. Su GDP fell 6.5% in volume to 60.6 billion euros. Galicia’s fell 8.8%, For the first time, it fell below the production levels of its neighbors (58,706 million).
Is it a temporary change? Looking at the developments in 2021, it doesn’t look like that. Portugal has been one of the fastest-recovering countries from the pandemic. Two-tenths more than the Galician community (5.2%), grew 5.5% and the northern region 5.4%. The Portuguese advantage is around 1,500 million euros.
Despite common demographics (the two regions have very high aging rates and a serious generational shift in the job market, among other issues), the productive profile is increasingly divergent. Of every hundred euros in gross added value in the north of Portugal in 2021, four come from the industrial sector. Mineral extraction, manufacturing and energy account for 26.1% of all economic activity, around €14,600 million, already exceeding pre-coronavirus levels (14,029 million in 2019). LThe sector’s injection into Galicia’s GDP was around 9,600 million.16.7% of gross value added and still below 2019 (9,900 million).
Trade, transport and accommodation led activity in the community (22%, approximately €12,660 million), while in the north of Portugal they accounted for approximately 18.9% (€10,600 million). The weight of public administration is slightly higher in Galicia (20.2% and 18.8% in the Portuguese region); same as construction (6.7% vs. 5.8%). The primary sector reached 4.8% of gross value added in Galicia and only 1.6% in the north of the neighboring country.